As promised, the product life cycle.
In this stage, you’re trying to inform people about your product and entice them to test it out. You have to make your product something they want to tell their friends about.
Here, you’re generally putting out more than you’re getting back; expenses are greater than revenue. That’s just how it works.
This is a good place to be. Sales are climbing but haven’t peaked. Competition is still pretty low. And you’re making a profit.
By this stage, you’re probably branching the product line out to appeal to more customers. However, your competitors are probably jumping onto the bandwagon by now as well. So, your promotion will need to show why you’re better than they are.
Sales have leveled off. Competition is high. Your product line is full. Basically, you’re stable.
Remind your customers who you are and why they picked you and why they should keep picking you.
The downside…keeping out of decline.
Sales are dropping. Retailers are removing your product from their stores. You’re no longer the first thought of your customers. You’re trying to stay profitable, but it’s not looking good.
Now comes the big decision: 1) Eliminate the product line, or 2) Bust your butt to put it back on the map.